All the way back in March 2009 we took the trade to go long the AUD/JPY at 62.15 (Forex Investing – AUD/JPY Trend Chage – Go Long). Now almost 8 months later and the trade is still in an uptrend and has reached a high over 85.15 which is 2,300 pips higher. Today now in the 82 range we continue to stay in the trade as the trend has not changed.
Looking at the chart we can see it has pulled back several times to the trend line. It actually broke the trend line twice however it has never had a sell signal at the trend line or below the trend line which is necessary to confirm a change in trend.
So we remain bullish on this trade however it has gone up so much that we are cautious that a change in trend may be near. We have moved our stop up again this time to 78.90 which would both break the trend line but also be a sell signal directly at the trend line and would confirm a change in trend.
This new stop loss assures us a profit of 1,675 pips. I would say that is a pretty nice trade so far.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
We have been a little quiet here the past few weeks as we have been holding off on making any other trades. Most of the charts are looking over extended and need to see a big pull back or a long period of consolidation to make the charts look attractive.
We are still long the AUDJPY as you can see from our previous post (Managed Forex Account – AUDJPY Trade Update). The chart has really taken off and the AUDJPY has been up above 80.40 at one point which is over 1,800 pips higher than our entry point at 62.15. The chart continues to show higher tops and bottoms above the trend line and all indicators continue to point up. It is very possible that we could see a strong pull back closer to the trend line but we will remain in the position as long as the price is above the trend line.
The stop loss has again been moved up along the trend line to 69.33 which will give us at a minimum over 700 pips on the trade.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
We have now seen one more currency see its trend turn against the USD. The Euro has now made its first buy signal above the trend line against the US dollar since the beginning of the big decline in July of ‘08. You can see on the chart how it made a very strong attempt back in December of ‘08 but never made a buy signal above the trend line and then fell back down to almost the previous lows. However it got support just above that and was able to make a higher bottom.
Right now it is a wait and see moment. If the pair falls back down near support and the trend line we will be looking to go long this pair.
If you like our technical analysis then please be sure to check out our other forex investment blog posts and read more about our managed forex account.
On April 10th we updated you on the AUDJPY trade we made in the managed forex account in a post called (Managed Forex Account – AUD/JPY Taking a Profit) where we had sold half of our 2% capital position after gaining 1,000 pips and to give us an 8% gain on the overall account.
We are still in this trade but have seen the AUDJPY fall back down over 500 pips on a pull back, this was somewhat expected as it had such a strong rally. The chart still looks very good at this point with nothing to make us to worried.
We remain in this position as the trend still remains above the trend line. As of right now our stop loss is at 64.65 which would be a sell signal and a change in the trend. The stop also does guarantee us at a minimum a 250 pip gain on the trade.
The EURJPY trade that was entered in the forex managed account last week in the post (Forex Managed Account – EURJPY Going Long) has now been stopped out. As you can see on the chart it broke previous support where we entered the trade giving the first sell signal in the new uptrend.
We had only placed a small trade of 1% capital on this trade due to our exposure already in the AUDJPY trade. We had a quick stop loss of 100 pips that did not hold. As of right now the up trend is still in place for the EURJPY.
If you like our technical analysis be sure to learn more about our forex managed account and how you can make a forex investment with us.
We tried to make an entry into the EURJPY around March 14th but never got the pull back we were waiting on to make the buy entry. You can view that post at (Forex Investments and Managed Forex Account – Long EURJPY). Since then the EURJPY has continued its upward move but has recently given us a good entry point on the recent pull back.
Looking at the chart below you can see that since breaking above the trend line it has made continuous higher tops and higher bottoms which is very bullish. The currency pair has now fallen back to previous support and it is again near the trend line which will also act as support.
We have already entered this trade at 126.90 and have placed a stop loss at 125.90 for a 100 pip stop. The stop is placed at the sell signal of the previous row of O’s on the chart, this would be considered a quick stop loss as the trend would not have been broken yet. We would rather use a quick stop loss on the entry as we can always find another entry point if we get stopped out.
The risk on this trade is 1% capital instead of the normal 2%. This is because we still have a position in the AUDJPY (Managed Forex Account – AUD/JPY Taking a Profit) of 1%. We do not want to get over extended against the JPY even though we are using different cross pairs.
If you like our technical analysis on the forex market be sure to read all our forex managed account trades on our blog and learn more about investing in foreign currencies with us.
As you know we have been long the AUD/JPY for about 1 month now. You can read all of our post so far on this trade at the following links (Forex Investing – AUD/JPY Trend Change – Go Long) (Forex Investments – AUD/JPY Update) (Managed Forex Account – AUD/JPY Update).
The trade has gone very well for us and a few days ago we took our first profit. We entered the trade with 2% capital risk at 62.15 and an initial stop at 60.90. We have moved our stop up to 64.65 which would be a sell signal and a break of the trend line.
We sold half our position at 72.15 and the trade so far has made us 1,000 pips. Because our initial stop loss was 125 pips and we took a 2% position with a 1,000 pip gain we have made 8% on the account in one month plus we still have half our position. If we had sold all our position we would be up 16% in one month while only risking 2% of capital.
From here we will stay in the AUD/JPY trade as long as the trend line is not broken and we will continue to move our stop loss up as the trend continues up.
If you like our technical analysis on the forex market be sure to read all our managed forex trades on our blog and learn more about forex investing with us.
